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Employee Separation (From His/Her Agency)
If an employee separates from his/her Agency through resignation or death before collection of a debt is completed, the balance is automatically collected from any subsequent payments due the indebted employee (e.g., final salary, lump sum payments). In addition to salary offset, when an employee separates or retires from an Agency and leaves an indebtedness, his retirement account can be levied against for settlement of the account. NFC forwards the account information to the Office of Personnel Management (OPM). Please refer to Exhibit 8: Lien Letter.
NFC generates and forwards to the debtor Form NFC-631 and the debtor package. This notice is used for employee debts that are not related to salary overpayments (i.e., for all debts of employees who have separated from his/her Agency before the debt collection was completed).
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